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| Accounting for Partnership : Basic Concepts (Accountancy) | Close X |
Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3:2. Following is the balance sheet of the firm as on March 31, 2006.
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Amount |
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Amount |
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Liabilities |
Rs |
Assets |
Rs |
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Mannu’s Capital |
30,000 |
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Drawings : |
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Shristhi’s Capital |
10,000 |
40,000 |
Mannu |
4,000 |
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Shristhi |
2,000 |
6,000 |
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Other Assets |
34,000 |
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40,000 |
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40,000 |
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Profit for the year ended March 31, 2006 was Rs 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.